Everyone loves a vacation, and if you seek the most efficient way to use funds you save for holidays, a timeshare might be an excellent consideration. This ownership allows people to visit luxury apartments and resorts year after year without a worry for you to plan a vacation. On the other hand, timeshare owners mostly decide to cancel timeshare contracts due to the high maintenance fees that are non-negotiable. Thus, think twice before signing a timeshare agreement. Today, we’ll introduce you to a common question: how long are timeshare contracts.
What is a timeshare?
Generally, timeshares appear as real estate programs for vacation and resort property. The principle of this ownership is sharing the cost of the property so it is considered more affordable for each owner. In addition, timeshares give individuals the right to stay in a specific property for a determined time. Most modern timeshare companies offer clients staying at resorts and apartments for a week annually, even though some developers might provide shorter or longer time blocks every year.
There are two main types of timeshare contracts – deeded and non-deeded. The first kind of contract allows getting a share of ownership, like buying a new home. A timeshare owner can pass ownership to their children or grandchildren, sell it, or rent it out. Deeded contracts are pretty common in a timeshare industry these days. At the same time, non-deeded timeshare contracts ensure an individual purchasing the right to use the property for an assigned number of years. It is like signing a lease where you don’t own the property directly.
By the way, timeshares belong to one of several usage systems. A fixed-week system isn’t that flexible since it allows an owner to use the property for the same time every year. On the other hand, floating-week systems appear more flexible – they let an individual visit a resort for a week, but the season is up to timeshare owners.
A point-based system is quite widespread in vacation clubs nowadays – an owner needs to purchase and gain a certain number of points annually and then spend them for vacation reservations. The fourth type of timeshare system called right-to-use lets timeshare owners receive a lease for the property share assigned for a particular number of years.
How long do timeshares last?
If you own a timeshare that features a right-to-use system, you will lease between 20 and 99 years. As a result, a timeshare can be associated with a lifelong purchase that you can pass to relatives in theory. In addition, a right-to-use timeshare is more accessible to cancel than other timeshares with a renewal process every few years.
A timeshare owner can terminate the contract during a renewal period for an agreement, but it isn’t that easy to do. It is worth mentioning that some contracts can be renewed every 99 years. If you wonder do timeshare expires, check up on your timeshare contract in terms of such a clause, while right-to-use timeshares often expire after a certain number of years.